Question 1 (0.5 points) The linear equation Y = m(X) + b is often used to express cost formulas. In this equation: O 1) the "m" term represents variable cost per unit of activity. 0 2) the "X" term represents total cost. U 3) the "b" term represents the number of units of activity. 0 4) the "Y" term represents total fixed costs Question 2 (0.5 points) Last year, the House of Orange had sales of $800,000, operating expenses of $700,000, and operating assets of $500,000. What was the company's return on investment? O 1) 12.5% O2) 20% 03) 1.4% 04) 62.5% Question 3 (0.5 points) The monthly rent expense on a manufacturing plant is most likely to be considered a: ( 1) variable cost. ( 2) all of the answers are correct. 03) period cost o 4) product cost. Question 4 (0.5 points) Job 425 was recently completed. The following data has been recorded on the job cost sheet. Direct materials: $1,800 Direct labor: $1,500 Actual manufacturing overhead incurred: $800 Direct labor hours: 75 hours Machine hours: 100 If the company applies manufacturing overhead to jobs at the rate of $10.00 per direct labor hour, how much manufacturing overhead was charged to job 425? 01) $800 O2) $750 O3) $1,000 04) $4,100 Question 5 (0.5 points) Assume Litten Corporation's sales last year were $791,000; its cost of goods sold were $412,000, and its selling and administrative expense was $214,000. Litten's gross margin is closest to: O 1) 47.91% O 2 ) cannot be determined from the information provided. 03) 52.09% 04) 20.86%